scholarly journals THE BALANCED SCORECARD AS A STRATEGIC PERFORMANCE CONTROL TOOL AND ITS LINK TO THE ECONOMIC PROFIT MEASUREMENT- EVA AND MVA: A LITERATURE REVIEW

2010 ◽  
Vol 2 (2) ◽  
pp. 76-87
Author(s):  
Anbalagan Krishnan ◽  
R. Ravindran
Keyword(s):  
Control System ◽  
Literature Review ◽  
Organizational Performance ◽  
Balanced Scorecard ◽  
Value Added ◽  
Performance Control ◽  
Strategic Performance ◽  
The Balanced Scorecard ◽  
Economic Profit ◽  
Control Tool

The organizational performance measurement and control system is vital to sustain the business in all economic environments. Organization requires a control system that measures the performance strategically. This paper gathers the literature discussion of one such popular integrated strategic performance control system, the balanced scorecard approach (BSC).  The discussion focuses on BSC approach on facilitating the implementation of organizational strategic and its link to the economic profit measures. Two popular economic profit measures, the Economic Value Added (EVA) and Market Value Added (MVA) are discussed in detail from various researchers point of view. The paper highlights the difference between these two measures and difference with the Return on Investment (ROI). The limitation of the economic profit measure is also highlighted in the discussion. As conclusion the link between the BSC strategic performance control tool and the economic profit measures are noted. This paper provides detailed discussions of both BSC strategic tool and economic profit measures based on literature review.

scholarly journals The Balanced Scorecard: the illusion of maximization without constraints

2012 ◽  
Vol 2 (1) ◽  
pp. 10-15
Author(s):  
Morten Jakobsen ◽  
Rainer Lueg
Keyword(s):  
Literature Review ◽  
Organizational Performance ◽  
Performance Measures ◽  
Balanced Scorecard ◽  
Analytical Study ◽  
Leading Indicators ◽  
Financial Indicators ◽  
Financial Success ◽  
The Balanced Scorecard ◽  
Overall Performance

The Balanced Scorecard (BSC) claims to maximize organizational performance through the management of different perspectives (e.g., financial, customers, internal processes, learning & growth). Most of the chosen measures are usually non-financial, as they are supposedly leading indicators of financial success. The developers of the BSC Kaplan and Norton see these perspectives as related, but not as linked to each other by accounting logic. Moreover, Kaplan and Norton recommend cascading the BSC across the organization by breaking up the BSC into sub-targets for each organizational unit.Inevitably, this can lead to situations where actors in an organization focus on a subset of non-financial indicators. In their attempt to maximize these indicators, unit-egoism may lead to sub-optimal overall performance of the organization. This is because the link from non-financial indicators at lower levels of the organization to the overall financial goals have been disjoined. This problem, however, has been largely ignored in the BSC-literature. Therefore, this paper addresses the rationality and limits inherent in the usage of multiple performance measures. For this, we conduct an analytical study based on a literature review.

scholarly journals Balanced Scorecard in Universities

2018 ◽  
Vol 10 (4) ◽  
pp. 57-83
Author(s):  
Justyna Fijałkowska ◽  
Cidalia Oliveira
Keyword(s):  
Literature Review ◽  
Performance Measurement ◽  
Balanced Scorecard ◽  
Public Management ◽  
New Public Management ◽  
Value Added ◽  
The Balanced Scorecard ◽  
New Managerialism ◽  
New Public ◽  
Transparency And Accountability

Abstract Objective: Performance measurement and reporting leading to greater transparency and accountability of universities have become a challenging issue. Increasingly, universities have been required to provide performance indicators—empirical evidence of their value creation — to the different group of stakeholders. One of the approaches that may be applied by universities is the Balanced Scorecard (BSC). The objective of this paper is to indicate the BSC as a useful tool for the evaluation of the universities’ performance. Methodology: This study is based on the following research methods: descriptive, deductive, and the literature review. It refers also to case studies that are quoted in the context of their practical BSC application experience and it presents the pioneer approach of California University in BSC adoption. The rationale of this paper follows the principal-agent theory that is a foundation of the accountability concept. It refers also to the new managerialism, new public management, and entrepreneurial university. Findings: Based on the literature review concerning the analysis of the examples of universities implementing BSC, this paper argues that BSC provides a framework for the performance measurement that allows for the increased transparency and accountability of these institutions. Value added: The pioneer BSC framework presented in this paper can be used as the basis for the development of general performance measurement in universities. Recommendations: It is recommended that the universities that want to boost their transparency and be accountable for their outcomes apply and develop the BSC framework to which we refer to in this paper.

scholarly journals Balanced Scorecard: Literature Review and Implementation in Organization

2021 ◽  
Vol 13 (1) ◽  
pp. 111
Author(s):  
Deni Ahmad Taufik ◽  
Humiras Hardi Purba ◽  
Hasbullah Hasbullah
Keyword(s):  
Decision Making ◽  
Literature Review ◽  
Organizational Performance ◽  
Balanced Scorecard ◽  
Strategy Implementation ◽  
Sustainable Growth ◽  
Business Strategies ◽  
Management Technique ◽  
The Balanced Scorecard ◽  
Component Selection

The balanced scorecard is a formal management technique for developing, implementing, and managing business strategies. It isn't easy to ascertain the technique's success. Most of the literature on its implementation is put out by those with a vested interest in its success as a commercial product. Much has been written about barriers to strategy implementation but not specifically to implementing a balanced scorecard. The literature review in this paper shows that studies on BSC implementation in corporate organizations focus on improving organizational performance, assisting in decision making, assisting in component selection, evaluating production and learning and sustainable growth. This paper provides benefits for further research to add to the literature and understanding of the implementation of the Balanced Scorecard in any organization.

scholarly journals The Role of Managerial Accountants and the Implementation and Monitoring of the Balanced Scorecard Metrics: A Literature Review

2021 ◽  
Vol 6 (2) ◽  
pp. p28
Author(s):  
Dhameeth, G.S. ◽  
Diasz, L.
Keyword(s):  
Literature Review ◽  
Financial Performance ◽  
Organizational Performance ◽  
Balanced Scorecard ◽  
Organizational Leaders ◽  
Management Tools ◽  
The Balanced Scorecard ◽  
Internal Capabilities ◽  
Financial Perspective

Organizational leaders use many management tools when planning and controlling. One of the most widely used is the Balanced Scorecard (BSC) metrics. Based on a literature review method used, this paper explored the dynamics that influence organizations to overlook the inputs of managerial accountants when using BSC when measuring organizational performance. We found that a misfit between the strategy of the firm and the firm’s internal capabilities and skills and the inability of the financial perspective to predict and improve financial performance to be predominant factors to overlook the inputs of managerial accountants when using BSC.

Performance Measurement using Balance Score Card and its Applications: A Review

2015 ◽  
Vol 4 (3) ◽  
Author(s):  
Shradha Gawankar ◽  
Sachin S. Kamble ◽  
Rakesh Raut
Keyword(s):  
Performance Measurement ◽  
Organizational Performance ◽  
Performance Management ◽  
Balanced Scorecard ◽  
Strategic Change ◽  
The Balanced Scorecard ◽  
Balance Score Card ◽  
Measurement Framework ◽  
Score Card ◽  
And Performance

This paper aims to propose the idea of briefly explaining the balance scorecard by highlighting its use, application in depth. A critical enabler in achieving desired performance goals is the ability to measure performance. Despite the importance of accurately measuring organizational performance in most areas of academic research, there have been very few studies that have directly addressed the question of how overall organizational performance is or should be measured. Perhaps more importantly, none of these studies seems to have significantly influenced how overall organizational performance is actually measured in most of the empirical research that uses this construct as a dependent measure. The most popular of the performance measurement framework has been the balanced scorecard abbreviated as BSC. The BSC is widely acknowledged to have moved beyond the original ideology. It has now become a strategic change management and performance management process. The approach used in this paper is the combination of literature review on evolution of balance score card and its applications in various sectors/organizations/ areas. This paper identify that the balanced scorecard is a powerful but simple strategic tool and the simplicity of the scorecard is in its design. By encompassing four primary perspectives, the tool allows an organization to turn its attention to external concerns, such as the financial outcomes and its customers expectations, and internal areas, which include its internal processes to meet external requirements and its integration of learning and growth, to successfully meet its strategic expectations. This paper provides a comprehensive overview of the balanced scorecard combined with application and strategy, which are now in a better position to begin to recognize managements expectations and to discover new ways to build value for workplace learning and performance within organization.

The Balanced Scorecard

2017 ◽  
Vol 5 (2) ◽  
pp. 1-15
Author(s):  
Jorge Gomes ◽  
Mário Romão
Keyword(s):  
Organizational Performance ◽  
Balanced Scorecard ◽  
New Developments ◽  
Organizational Skills ◽  
The Balanced Scorecard ◽  
Customer Preferences ◽  
Innovation Activities ◽  
Measurement Tools ◽  
Physical Assets ◽  
And Performance

Organizations are challenged to develop new organizational skills such as flexibility or expertise in order to quickly respond to changes in technology, competition and customer preferences. Companies cannot be competitive or successful if their business and information systems and technology (IS/IT) strategies are not strategic aligned. Nowadays, the importance of intangible assets is higher than traditional physical assets and performance measurement tools need to capture this new reality. Measuring organizational performance is a continuous challenge for both managers and researchers. Balanced scorecard (BSC) is a powerful tool that gives to managers a fast, but comprehensive view of the business including operational measures on customer satisfaction, organization's innovation, activities improvement, as well as financial measurements. In this paper the authors address the BSC and promote the discussion about the strengths and the limitations and pointing out new developments to overcome the today´s business trends.

scholarly journals Organizational Performance, Firm Size and Chief Executive Officer’s (CEO’S) Compensation for Firms Listed in Nairobi Securities Exchange, Kenya

2019 ◽  
Vol 7 (06) ◽  
Author(s):  
Omamo Anne ◽  
Peter K’ Obonyo ◽  
Florence Muindi
Keyword(s):  
Organizational Performance ◽  
Firm Size ◽  
Balanced Scorecard ◽  
Secondary Data ◽  
Chief Executive ◽  
Primary Data ◽  
Financial Indicators ◽  
The Balanced Scorecard ◽  
Listed Firms ◽  
The Relationship

This study examined the link between organizational performance, firm size and CEO’S compensation of firms listed at the NSE. Past studies on the determinants of CEO’S compensation revealed a lack of consensus to the explanation of increases in CEO’S compensation. While most of the studies confirm linkages between organizational performance and CEO’S compensation, they measured organizational performance using financial indicators of performance, the current study investigates the relationship between organizational performance and CEO’S compensation but differs from the previous studies by expanding the measures of organizational performance to include the balanced scorecard measures of financial indicators, customer satisfaction, internal processes and learning and growth elements of performance. Additionally, the study sought to find out the moderating role of firm size on the relationship between organizational performance and CEO’S compensation. The theoretical foundation of this study was based on agency theory. A conceptual model and conceptual hypothesis were drawn from literature and provided directions for this study. The study’s population constituted 60 firms listed at the NSE. Descriptive crossectional survey was adopted for this study. Primary data was collected to capture the opinion of board members on factors that determine levels of CEO’S compensation using semi structured questionnaire. Secondary data was gathered from the financial statements of the listed firms for 2015-2016 financial periods. Descriptive statistics and stepwise regression were used to analyze and interpret the collected data. The study revealed that there was significant and positive relationship between organizational performance and CEO’S compensation. The study further found that firm size had a significant moderating effect on the relationship between organizational performance and CEO’S compensation.  

The Influence of Knowledge Management Process Supported With Organizational Strategies on Organizational Performance via Organizational Innovation and Technology

2018 ◽  
pp. 711-751 ◽  
Author(s):  
Yakup Akgül ◽  
Mustafa Zihni Tunca
Keyword(s):  
Knowledge Management ◽  
Stock Market ◽  
Organizational Performance ◽  
Balanced Scorecard ◽  
Business Strategies ◽  
Organizational Strategies ◽  
The Balanced Scorecard ◽  
Management Processes ◽  
Innovation And Technology ◽  
Knowledge Management Processes

In this chapter, the authors aim to investigate the impact of knowledge management and strategy configuration coherence on İstanbul stock market businesses' innovation and organizational performance through a quantitative analysis carried out on a sample of 203 İstanbul stock market businesses. This study also identified the relationship of organizational performance from the standpoint of the balanced scorecard, which includes the customer-related, internal business process and perceptual financial aspects of organizational performance in İstanbul stock market businesses context. A survey was administered and a sample of 203 middle managers was analyzed using partial least squares (PLS-Smart 2.0) for inferential analysis and SPSS version 22 for descriptive insights. The results of the study revealed that business strategies influence the knowledge management processes fully or partially. Knowledge management processes influence the innovation partially. Innovation influences the organizational performance fully. Knowledge management processes and technology influence the organizational performance partially. Knowledge management processes, technology, and business strategies influence the organizational performance partially.

Sustainable Competitive Advantage With the Balanced Scorecard Approach

2019 ◽  
pp. 1415-1428
Author(s):  
Jorge Gomes ◽  
Mário José Batista Romão
Keyword(s):  
Strategic Management ◽  
Competitive Advantage ◽  
Organizational Performance ◽  
Balanced Scorecard ◽  
External Factors ◽  
Sustainable Competitive Advantage ◽  
The Balanced Scorecard ◽  
Fundamental Goal ◽  
The Subject ◽  
Internal Sources

Why are some firms more successful than others? This question has been intensely debated by strategic management researchers over the last 30 years. Competitive advantage is recognized as being the major cause for explaining top organizational performance and is a fundamental goal of academic strategic management studies. Recently, there has been an increasing amount of empirical research on the subject of competitive advantage and about distinguishing competitive advantage from organizational performance. The relevance of competitive advantage is not simply determined by external factors, but also by those internal sources that have been considered critical for successful organizations.

Integrating the Balanced Scorecard and Software Measurement Frameworks

2001 ◽  
pp. 240-252 ◽  
Author(s):  
Nancy Eickelmann
Keyword(s):  
Organizational Performance ◽  
Balanced Scorecard ◽  
Product Evaluation ◽  
Measurement Model ◽  
Maturity Model ◽  
Software Measurement ◽  
The Balanced Scorecard ◽  
Capability Maturity ◽  
Software Product ◽  
Iso 9126

This chapter describes the integration of the Capability Maturity Model (CMM) and ISO-9126 software measurement frameworks with the National Aeronautics and Space Administration Independent Verification and Validation Facility (NASA IV&V). Balanced Scorecard IV&V is a unique aspect of software development practice as it provides a service of independent and objective lifecycle evaluation of the software product and processes used for development. To accomplish this rigorous task a sophisticated measurement program is desirable. This chapter describes the application and integration of strategic measurement (BSC) with organizational measurement (CMM) and product measurement (ISO-9126). The CMM is a measurement model of ordinal ranking of an organization’s software process variability and repeatability. As an organization’s process becomes more mature it may traverse the scale from a level one to a level five organization. The CMM provides a basis for collecting accurate and timely measures of process performance. The international standard ISO/IEC-9126 focuses on information technology and software product evaluation through measurement of software quality characteristics. The development of a core set of metrics for implementing the Balanced Scorecard is the most difficult aspect of the approach. Developing metrics that create the necessary linkages of the operational directives with the strategic mission prove to be fundamentally difficult as it is typical to view organizational performance in terms of outcomes or results. The metrics must address performance drivers or the measures that provide feedback concerning day to day progress.

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